Chapter 5 Flashcards
Encumbrance
Any charge, claim, right, burden (otherwise called a cloud on title), and/or interest in real property other than the owners, including but not limited to, any restriction upon the title to real property, affecting and/or limiting any interests or its use.
Lein
A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation (ex: judgments, taxes, mortgages, deeds of trust, etc.)
Voluntary Lien
Any lien placed on a property with the consent of, or as a result of, the voluntary act of the owner.
Involuntary Lien
A lien imposed against property without the consent of an owner (ex: taxes, special assessments, federal income tax liens, etc.)
Debt
That which is due from one person or another; obligation, liability
Promissory Note
Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. the promissory note establishes personal liability for its payment. the evidence of the debt.
Security Instrument
A contract whereby a debtor agrees to use the property as security or collateral for the repayment of debt.
Hypothecate
To pledge a thing as security without the necessity of giving up possession of it.
Mortgage
A contract whereby a mortgagor agrees to use the real property as security for the repayment of debt.
Foreclosure
A procedure whereby property pledged for a debt is sold to pay the debt in the event of default in payment or terms.
Trustor
One who borrows money from a trust deed lender then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.
Trustee
One who holds the property in trust for another to secure the performance of an obligation. Third-party under a deed of trust.
Real Property Sales Contract
An agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract.
Vendor
A seller
Vendee
A purchaser, buyer
Deed in Lieu of Foreclosure
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
Mechanics’s Lien
A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.
General Lien
A lien on all the property of a debtor
Specific Lien
A lien that attaches to one specific property only.
Package Loan
A type of loan used in home financing covering real property, improvement and movable equipment/appliances.
Judgment Lien
A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of judgment
When is a mechanics lien effective?
When the supplies were ordered or work was done. Whatever comes first. Their lien position is based on this date.
Easement
A right, privilege or interest limited to a specific purpose which one party has in the land of another.
a non-possessory right to use the land of another
Easement Appurtenance
A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.
Easement in Gross
A right of use in the land of another without the requirement that the holder of the right own adjoining land. (Usually used by utility companies)
ingress-egress
For entry and Exit of one’s own property.
Servient Tenement
Land encumbered by an easement.
Dominant Tenement
Land benefiting from an easement appurtenant
Easement by Voluntary Grant
An easement obtained by the express written agreement of the landwoner, usually in a deed.
A grantor conveys the right to use the grantor’s land to a grantee for the purpose of ingress and egress
Easement by Necessity
It exists when a landowner has no access to roads and is landlocked.
Easement by Prescription
An easement obtained by use of the land of another’s property for the legally prescribed length of time.
Adverse Possession
A method of acquiring title to real property by conforming to statutory requirements; a form of involuntary alienation of title.
What does “Run with the Land” mean?
Easements “Run with the Land” meaning even after the property is sold, the easement (whether benefiting or limiting the property) transfers to the new owner.
Easement by Implication
An easement obtained by the implication from the conduct of the parties.
Easement by Condemnation
An easement created by the exercise of the government’s right of eminent domain.
Encroachments
An unlawful intrusion on to a neighbor’s adjacent property by improvements to real property
Encroachments are essential objects that illegally overhang on to an adjacent property. (a Tree, Fence, Driveway, Roof Overhang)
